A practical guide for drafting legally enforceable commercial agreements in Nigeria. Learn essential clauses every business contract must contain.
INTRODUCTION
A commercial agreement protects your business interests and ensures enforceability in court. Many disputes arise because agreements were poorly drafted or downloaded from the Internet.
Here is a checklist of what your commercial agreement MUST contain.
1. Proper identification of parties
Full names, addresses and capacity of each party must be clearly stated.
No abbreviations. No assumptions.
2. clear statement of purpose
The agreement must state:
• What both parties want
• What business they are entering
• The expected outcome
Ambiguity leads to disputes.
3. obligations of each party
List obligations:
• Clearly
• Separately
• Without overlap
Courts interpret obligations strictly.
4. consideration (payment terms)
Include:
• Fee
• Mode of payment
• Milestones
• Conditions for release
5. durations & termination clause define:
• Start date
• End date
• What triggers termination
• Notice period
6. confidentiality clause
Essential in commercial agreements.
7. dispute resolution clause include:
• Negotiation
• Mediation
• Arbitration option
• Court jurisdiction
8. governing law clause
State Nigerian Law to avoid conflict of laws.
CONCLUSION
A strong commercial agreement prevents losses and protects business relationships.
For contract drafting, consult experienced commercial lawyers.
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